franchise quiz
HOW DO YOU INVESTIGATE YOUR OPTIONS?
Regardless of whether you choose to remain an independent business owner or become a franchisee, research is the single most important activity in making your decision. Without adequate information, you may end up making the most costly decision of your life.
WHAT BUSINESS SHOULD YOU START?
Sometimes people start a business because they think they'll make a lot of money, only to find out that they do not enjoy the business. The adage, "know thyself" certainly applies here. You should start a business in an industry that you will enjoy for the next 10 to 15 years.
Ask yourself
- What do you like to do? (interest and hobbies)
- What do you know how to do? (experience)
- What do you do well? (special skills and talents)
- What products or services could you sell in this industry(s)?
- Would you rather sell a product or service?
- What products or services would you like to sell the most?
DETERMINE IF THERE IS A MARKET
Before starting any business, determine if there is a market for your product or service.
Conducting market research
- How many potential customers are in your area?
- Will your product or service sell?
- What need does it satisfy?
- What problem does it solve?
- What trend or fad does it address?
- What should the appropriate pricing be?
- Who are your competitors?
- How many competitors do you have?
- What do they offer?
- How will your product or service be unique?
- What marketing niche can you capture?
DETERMINE IF YOU CAN AFFORD TO START A BUSINESS
In order to start a business, you have to have money! In order to stay in business, you have to make money! The single most common reason new businesses fail is that they did not have enough money to begin with! Don't forget the old business adage: "It takes twice as long and costs twice as much!"
Costs to consider:
START-UP COSTS
- Location design and construction
- Professional fees
- Equipment and fixtures
- Furniture
- Opening inventory and supplies
- Insurance
- Pre-opening labor
- Opening advertising and promotion
WORKING CAPITAL
- Salaries
- Insurance
- Utilities
- Advertising
- Rent
- Interest on a loan, if applicable
MONEY FROM
- Yourself
- Family
- Friends
- Savings and investments
- A partner
- Selling personal assets
- Loans
